Uber Raising Billions as Rivals Form International Alliance

A proprietary eponym is a figure of speech where a specific brand has become so ubiquitous that it comes to represent the entire market in which it exists. The best example of this is Kleenex for tissues, or Coke for soda. For ride-sharing, Uber is coming very close to this threshold to represent all-ride sharing services, and its competitors are gearing up to fight it.
Yesterday, four ride sharing services from around the globe announced that they would be forming an alliance. According to CNN Money Southeast Asia’s GrabTaxi and India’s Ola Cabs are joining a partnership that was originally announced in September between Lyft and Chinese company Didi Kauidi. The partnership would allow users of one service in one country use the other services in their respective home countries, and vice versa.
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The partnership, which is set to roll out in the first quarter of 2016, will cover 50 percent of the world’s population. The alliance is geared at creating a serious rival for Uber. Though this partnership has together raised $7 billion, that is roughly equal to what Uber has raised. Even with this partnership, it will be hard to take on the San Fransisco-based ride-sharing giant.
Uber is now seeking another $2.1 billion in financing. If it is able to get it (in all likelihood it will), the company is expected to be valued at an incredible $62.5 billion, thus earning the title of most valuable technology startup in the world. If it gets this latest financing, it would be the third round of at least a billion dollars in the last year, though the company has repeatedly said it is nowhere near ready for an IPO.
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According to The Verge, Uber CEO Travis Kalanick told attendees at the WSJDLive conference this past October, “"We're maturing as a company, but we're still like eighth graders. We’re in junior high. And someone's telling us we need to go to the prom, but it's a little early. Give us a few years.”
In the meantime, Uber attempting to become everything to everyone when it comes to transportation. The company, which already has 400,000 drivers and 8 million users, is testing out services like carpooling, deliveries for food and packages, as well as its initiatives in developing autonomous cars.
The competition may be ganging up to take on Uber, but Uber shows now signs of giving up the throne.
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Image Credit: Free Malaysia Today